Date:22/10/2005 URL: http://www.thehindubusinessline.com/2005/10/22/stories/2005102201721200.htm

Back Cardamom prices recover on buying

G.K. Nair

Kochi , Oct. 21

CARDAMOM prices recovered during the week at auctions in Kerala and Tamil Nadu on good buying support.

The prevailing low prices seem to have prompted North Indian investors to buy and stock cardamom, anticipating increase. The reported devastation of crop in Guatemala by hurricanes, market sources feel, might make an impact in the prices early next year due to short supply. Increased buying during the week despite heavy arrivals pushed up the prices to the level ruling week before last. They feel that investing in the commodity would fetch them a good return, they said.

Arrivals were heavy and during October 13-19, it stood at 250 tonnes of which 229 tonnes were sold. The individual average price moved up from Rs 197.94 to Rs 231 a kg on Wednesday at Kumily auction.

Total arrivals during the current season up to October 19 were at 2,744 tonnes as against 1,376 tonnes in the same period last year. The sales stood at 2,571 tonnes in the current season as against 1,301 tonnes last season. The weighted average price on October 19 was Rs 234.97 a kg compared with Rs 319.83 on the same date last year. Increased availability of 8 mm bold has kept the price of this superior grade at Rs 437 a kg at Kumily auction while 7mm - 7.5 mm were sold at Rs 280 - Rs 295 a kg.

The prices of graded varieties as on Aug 15 were AGEB Rs 295 - Rs 305, AGB Rs 220 - Rs 230, AGS Rs 200 - Rs 210 and AGS 1 Rs 190 - Rs 200 a kg. Where as, the prices of these grades in the open market at Bodinayakannur on Thursday were AGEB Rs 290 - Rs 300, AGB Rs 210 - Rs 220, AGS Rs190 Rs 200 and AGS 1 Rs 185 - Rs 190 a kg.

Exporters continued to remain inactive despite the availability of good quality capsules at low prices. Market sources attributed this phenomenon to lack of demand from overseas markets where the importers are holding adequate carry over stock of Guatemala cardamom. Besides, given the reported bumper crop in India they are expecting that the prices here will drop further, the sources pointed out.

According to trading sources in Bodinayakannur the dealers are facing labour shortage now for handling the huge arrivals. The rains in several parts of the country has delayed the movement of consignments to north Indian markets, they said.

The favourable weather conditions prevailing in the growing areas all through the current season might lead to a bumper crop this year, trading sources predicted.